Reader Questions - Renter Information, Who Votes?, and HOA Financials

Hi Kelly,

What recourse does a Board pursue when they cannot get information from owners on tenants residing in their community such as names, phone numbers?

I am not sure the best way to proceed.

Thanks,

M.H. (manager) Pasadena

Dear M.H.,

Under Civil Code Section 1360.2(d), new in 2012, before an owner rents a residence, the association must be provided the:

1. Date the owner acquired the residence;
2. Name of the prospective tenant; and
3. Contact information of the prospective tenant.

This is a new law, so most members probably are unaware of it. If, after notification of the new law, the owner refuses to comply, the association may need to impose disciplinary proceedings. It has always been a good idea for the association to have record of who has the right to occupy a given residence, but now it is the law.

Best,
Kelly

Dear Kelly,

Are members permitted to make motions from the floor during Board of Directors meetings? Can you please provide the legal citation?

Thanks,

G.K., Anaheim

Dear G.K.,

Members make motions at membership meetings, and directors make motions at board meetings. Membership meetings decide matters which are submitted to all of the members for decision. Common membership meeting topics would include the election or removal of directors, amendments of the CC&Rs or bylaws, or major assessments. There are various sections of the law which reference the board making motions in the board meeting, such as Corporations Code Section 307(a)(4-6). The “Open Meeting Act” provides at Section 1363.05(b) that members may attend, but does not say members participate. At subpart (h) of that law, members are to be permitted to speak to the board, a right to speak often called “open forum”.

The members hold the board responsible to them as fiduciaries, and should allow directors to do what they were elected to do. Let the directors direct, because if everybody is running everything, nobody is running anything.

Best,
Kelly

Dear Mr. Richardson,

Our son has put bids in for several condos. He asked his realtor if she could get a copy of the HOA’s financials to make sure they were solvent and had reserves built up. Her response was that it would be provided at escrow. Doesn’t that seem a bit late for him to find out if the HOA was in financial trouble or if there are any major assessments in the future? Is there a place online to check financials for different HOA’s?

Thank you for any assistance,

K.G., Westminster

Dear K.G.,

Smart buyers such as your son evaluate much more than merely “location, location, location” when buying a common interest development residence. Buyers need not and should not wait until the last moment to review the very important financial disclosure package. Insist that it be provided in sufficient time before escrow closes so that it can be carefully reviewed. However, the important financial disclosures under Civil Code Section 1368 may be set as one of the inspections of the buyer, and therefore a contingency of the sale. Sellers should be prepared for their buyers, and make sure they have these documents ready earlier in the escrow process. There is no place to check on line to check the stability of an association, so close attention to these disclosures is critical.

Good luck to your son!
Kelly

Written by Kelly G. Richardson

Kelly G. Richardson Esq., CCAL, is a Fellow of the College of Community Association Lawyers and a Partner of Richardson | Ober | DeNichilo LLP, a California law firm known for community association advice. Submit questions to [email protected]. Past columns at www.hoahomefront.com. All rights reserved®.